The value of London’s housing is on the brink of bursting through the £2 trillion barrier, according to new research today. Despite a flat market London’s housing stock was worth £1.992 trillion, up £31 billion, says the analysis from agents Savills. That is equivalent to the annual GDP of a country the size of Canada. For the UK as as whole the total value now stands at £9.1 trillion , or 3.5 times the annual GDP of the UK.
Unmortgaged housing stock is the largest tenure by value worth £3.42 trillion and the fastest growing - up by 66% over the past 10 years. Last year marked a return to growth - adding £346 billion - after the value of the UK’s housing stock fell in 2023 for the first time since 2011. “This in turn should lead to further upward pressure on values, mitigating any impact that increased taxation and regulation will have on the PRS sector, as well as lower levels of housebuilding.”.
The north west, Scotland, and Yorkshire and the Humber have each added at least £37 billion to the value of their housing stock since 2022, exceeding the £31 billion growth seen in London. Over the last decade London and the South East have grown relatively slowly in percentage terms, but have still added the most value in raw terms, at more than £1.2 trillion. Dan Hill, research analyst at Savills, said: Regional markets that are less reliant on debt have more capacity for growth and therefor remained the most robust.
